European markets kicked off the week on a cautious note, trading mixed on Monday amid holiday-thinned volumes and growing anticipation over key corporate earnings and central bank decisions later in the week.
With UK markets closed for a bank holiday, trading activity was relatively subdued across the continent.
Investors focused on economic indicators, company-specific news, and global monetary policy cues to set the tone.
DAX gains while CAC slips; Erste-Santander deal lifts sentiment
Germany’s DAX index rose 0.47%, bucking the regional trend, while Italy’s FTSE MIB hovered near the flatline.
France’s CAC 40, however, declined 0.62% as investors took some risk off the table.
In corporate news, Austria’s Erste Group Bank announced it had acquired a 49% stake in Santander Bank Polska and a 50% interest in Santander TFI, its Polish asset management arm.
The move sent Erste Group shares surging by nearly 7%, boosting sentiment in the banking sector.
Shell weighs BP acquisition; Eutelsat jumps on leadership shake-up
Oil giant Shell slipped around 1.2% on the Amsterdam exchange following reports from Bloomberg that it is evaluating a potential acquisition of British rival BP.
While the news sparked speculation, investors remained cautious amid regulatory and strategic uncertainties.
Meanwhile, French satellite operator Eutelsat soared over 17% after announcing the appointment of Jean-François Fallacher, a former executive at Orange, as CEO effective June 1.
The leadership change was welcomed as a positive step toward revitalizing the company’s strategic direction.
Inflation data mixed across Europe
Economic indicators offered a mixed picture.
In Switzerland, inflation came in flat for April compared to the same month last year, undershooting analysts’ expectations and easing pressure on the Swiss National Bank.
In contrast, Turkey reported a 3% monthly rise in consumer prices, pushing its annual inflation rate to a hefty 37.86%, reflecting persistent cost-of-living pressures.
Earnings season and central bank decisions ahead
Though Monday marked a slow start on the earnings front, the rest of the week is expected to be more active, with major European firms including Novo Nordisk, BMW, Maersk, and Commerzbank scheduled to report results.
Market participants will closely watch these releases for signals on consumer demand and sector resilience.
Central bank activity will also be in the spotlight.
Interest rate decisions are expected from Sweden’s Riksbank, Norway’s Norges Bank, and the Bank of England, with investors eyeing any signs of policy shifts amid easing inflation across parts of Europe.
Global cues: Asia quiet, US futures dip
Global markets were relatively quiet, with many Asia-Pacific exchanges closed for public holidays.
In Australia, equities declined after Prime Minister Anthony Albanese secured a historic second term.
In the US, stock futures traded slightly lower after a strong performance last week that saw the S&P 500 notch its longest winning streak in over 20 years.
Investors are closely watching for the Federal Reserve’s upcoming rate decision, with consensus expecting interest rates to remain unchanged.
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